COPENHAGEN -Vestas, the world’s largest maker of wind turbines, on Wednesday reported lower-than-expected third-quarter operating profit and cut its forecast for operating profit margin for the full-year.
Citing rising costs and supply chain instability caused by the coronavirus pandemic, the company lowered expectations to its operating profit margin to 4% from 5-7% previously – a far cry from its long-term target of a 10% margin.
“The quarter was thus characterised by supply chain instability and rising energy prices as well as accelerated cost inflation from raw materials, transport, and turbine components, which severely impacted profitability and limits visibility,” Chief Executive Henrik Andersen said in a statement.
Operating profit before special items fell 21% to 325 million euros ($376 million) in the quarter, lagging the 381 million euros forecast by 16 analysts in a poll compiled by the company.
Vestas stuck to its previous forecast of full-year revenue in the range of 15.5-16.5 billion euros. ($1 = 0.8633 euros)
(Reporting by Jacob Gronholt-Pedersen)
